2010-03-11-2010-01-28-2010-01-28

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Buyers
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Description

Purchased 3 gas concessions in eastern Ukraine's Donbas Basin with 530 Tcf potential.

EuroGas Ukraine Ltd., a subsidiary of Vienna-based EuroGas GmbH and Kiev, Ukraine-based ZNVKIF New Technologies, has acquired three gas concessions in eastern Ukraine's Donbas Basin.

The acquisitions are part of a five-concession joint agreement with Nadra Luganshchiny Ltd., also a subsidiary of investment fund New Technologies, covering 512 square kilometers. The largest concession, Marijewvskogo Poligon, may contain more than 530 billion cubic feet of coalbed methane, according to a report prepared by Montan-Consulting GmbH for the World Bank in 1998.

Drilling preparations are under way and discussions have been held with an undisclosed Calgary-based drilling company for a program to begin later this year.

EuroGas Inc., (Pink Sheets: EUGS) has a 30% interest in London-based McCallan Oil & Gas (U.K.) Ltd., which owns EuroGas Ukraine's parent company, EuroGas GmbH. EuroGas Inc. has an option to increase its ownership in McCallan to 100%.

In September 2009, EuroGas GmbH signed an agreement to explore for unconventional gas in the Lublin Basin of Western Ukraine. The Polish portion of the basin has been a hotbed of activity, with majors ExxonMobil, Chevron, ConocoPhillips and Marathon Oil acquiring licenses along the Ukrainian border in recent months.